Boeing plugs its border security plan

By JAMES GUNSALUS AND AMY THOMSON, BLOOMBERG NEWS

Published 10:00 pm, Wednesday, August 30, 2006

The Boeing Co. said it could have a network of sensors and radar installed along U.S. borders in less than three years if the company wins a security contract coming up next month that's worth about $2.5 billion.

The defense contractor's bid hinges on a network of more than 300 towers on the U.S. borders with Mexico and Canada with devices from sensor, communication-equipment and software makers, said Jerry McElwee, Boeing's program director for the so-called Secure Border Initiative.

Boeing released details of its strategy ahead of a decision by the Department of Homeland Security on the contract, which will help move beyond fences and border patrol guards to secure more than 5,000 miles of borders. The contract may ultimately be valued at as much as $8 billion as the United States moves to secure maritime borders as well, Boeing said.

"This is not like a standard defense contract," McElwee told reporters in Washington, stressing the scope and challenges of the project.

The contract is likely to be the second-largest program since the Homeland Security Department was created in 2003. Accenture Ltd. won a $10 billion contract to help collect and share information on foreigners entering the United States.

Boeing is competing with teams led by Raytheon Co., Lockheed Martin Corp., Ericsson AB and Northrop Grumman Corp. to help stem the flow of more than 1 million illegal aliens that were arrested last year trying to cross the U.S.-Mexican border and to stanch smuggling and terrorist threats.

Boeing plans to use stationary and mobile towers as well as unattended ground sensors, radar, infrared cameras and small unmanned aircraft to patrol the border. Most of the items are currently available and need no funding for development, Wayne Esser, who is leading Boeing's bid, said in an interview.

"Nothing like this has been done before," Esser said. "Not so much because of the technology that will be used, but because of the political atmosphere, geography, topography and large scope of the project."

James Albaugh, who heads Boeing's defense unit, personally gave the company's oral presentation in Washington on Aug. 18. The defense business, which accounts for more than half of Boeing's total sales, has contracts for a U.S. missile defense system and the Pentagon's $164 billion Future Combat Systems, a series of computer-networked manned and unmanned vehicles.

The system would tap intelligence gathered from authorities such as the Drug Enforcement Agency to predict where sensors and monitors should be more active, Esser said. Seismic ground sensors and technology used for oil exploration will be used to find suspected tunneling sites, he said.

"Knowing that a busload of people with no luggage is headed for the U.S. border at Sonora will help us with what to look for, where to intercept and keep guards and civilians safe," he said.